US CPG spending increases, with food and beverages accounting for the largest share

Recently, a new study by NCSolutions Business showed that from March 2020 to February 2021, Americans increased their spending on certain food and beverage categories and regarded some consumer packaged goods (CPG) as must-haves in the pantry, prompting CPG spending to increase by an average of 14% compared with the same period last year.

As can be seen from the table above, during this period, the largest increases were mainly in frozen foods ( +29%), dry grains and beans (+28%), baking ingredients (+27%) and fresh produce (+24%). Alcohol (+23%), breakfast foods (+21%), soft drinks (+18%), coffee (+14%), snacks (+13%) and confectionery (+12%) also saw considerable growth.

Survey data shows that Americans are likely to continue this shopping behavior. They plan to stock their pantries with more essential items including cleaning supplies ( 81%), toilet paper and paper products (80%), long-lasting foods such as rice, pasta, beans and soup (72%); basic health care items such as pain relievers, cold and flu allergy medicines and thermometers (63%); proteins such as chicken, fish, steak, tofu, pork and eggs (63%); and fresh fruits and vegetables (63%).

Other CPGs that are mainstays of Americans’ pantries post-COVID-19 are snack foods, such as chips, nuts and pretzels (58%); convenience and frozen foods (57%); baking ingredients such as flour and sugar (55%); vitamins and supplements (54%); soft drinks (44%); candy and sweets, such as cookies, ice cream, brownies and baked goods (39%); beer and wine (22%); liquor (14%); and soda (7%).

Consistent with this finding, U.S. consumers say they maintain their physical health by eating healthy foods, exercising, and taking vitamins and supplements.

The findings show that consumers are also paying close attention to cleaning products. According to consumer purchasing data from NCSolutions, spending on cleaning products increased 36% year-over-year from March 2020 to February 2021, more than any other grocery category.

In fact, Americans are spending more on groceries, and CPG brands will increase with it, which these sellers can focus on to increase their market share.

USA

CPG spending

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